Morrisons has announced that it is to pay Asda £28.1 million for 16 ex-Netto stores, which will add 120,000 sq ft of retail space to the company’s property portfolio.
The Bradford-based grocer has entered a conditional agreement with its supermarket group rival to acquire the former Danish retailer’s outlets in locations such as Telford, Accrington and West Bromwich.
Staff already employed at the Netto stores will transfer to Morrisons under TUPE regulations.
The handover of the stores is expected to commence in March, and is expected to take three months to convert in total.
A statement released by Morrisons today indicated that obtaining the stores is conditional upon the successful completion of Asda’s takeover of Netto UK and final approval by the Office of Fair Trading (OFT).
In September the OFT cleared Asda’s acquisition of Netto’s 195 UK stores, but called on the Walmart-owned company to sell 47 outlets due to competition reasons.
Dalton Philips, CEO of Morrisons, said: “These additional stores are an important next step in Morrisons’ growth.
“We are building on our strategy to bring Morrisons’ unique offer of freshly prepared, affordable food to more people in Britain.”